In 2023, Aliko Dangote’s financial situation took a significant turn for the worst. Dangote’s wealth dropped by an astounding $3.6 billion in 2023, reversing the impressive gains of 2022, despite a noticeable growth in the market value of his numerous holdings and investments.
Dangote, the founder and chairman of Dangote Group, Africa’s most diversified manufacturing conglomerate, saw his net worth decline from $18.7 billion on January 1 to $15.1 billion at the time of writing this report, according to the Bloomberg Billionaires Index, which tracks the wealth of the world’s top 500 richest people.
The Central Bank of Nigeria’s plan to unify the nation’s disparate currency rates on June 14, 2023, by using the FX-managed float mechanism for rate unification, is blamed for this fall. The market value of the assets and investment holdings of Nigerian billionaires like Dangote, whose companies are predominantly headquartered in Nigeria, declined as a result of the ensuing depreciation of the naira, which saw the currency lose more than 50% of its value between June 14 and December 28.
Despite these obstacles, Dangote’s $20 billion refinery—which has the biggest refining capacity in Sub-Saharan Africa—is preparing to transform the energy industry on the continent. The arrival of the first oil shipment, transported by the OTIS tanker carrying 950,000 barrels of Nigerian Agbami crude, earlier this month represented a significant accomplishment.
The Dangote Petrochemical Complex, which is located in Lekki, Nigeria, formally opened for business on March 31, 2019, with a 350,000 barrel per day crude oil capacity. There are plans to expand the facility in the future to a maximum of 650,000 barrels per day.
The complex’s primary output will be gas, diesel, and aviation fuel, with intentions to add gasoline production in later phases. Based on projections, the facility is expected to yield $27 billion in revenue annually when operating at maximum capacity.
Dangote gave thanks for overcoming obstacles as he considered the difficulties faced during the protracted $20.5-billion petrochemical complex building, which went over budget by $8 billion and saw major delays.
“We either sail through or sink,” he said. And we give thanks to God that we have made it to the destination at all. The operationalization of the Dangote Oil Refinery portends a probable improvement in Dangote’s financial situation soon, notwithstanding the company’s recent financial loss.
